Quantifying Welfare Impacts of Air Pollution in Seoul: A Two-Stage Hedonic Price Approach
Myung-Jin Jun ()
Additional contact information
Myung-Jin Jun: Department of Urban Planning and Real Estate, Chung-Ang University, Seoul, 84 Heukseok-ro, Heukseok-dong, Dongjak-gu, South Korea
Journal of Environmental Assessment Policy and Management (JEAPM), 2018, vol. 20, issue 02, 1-25
This study aims to measure welfare loss due to the high pollution levels of PM10 and NO2 in the Seoul metropolitan area (SMA), Korea, which do not comply with the international standards, using spatial hedonic price models with apartment sales and air pollution data in 2010. The major findings were as follow: First, spatial hedonic model estimation reveals statistically significant negative signs for air pollution index for all submarkets, empirically presenting a trade-off between air pollution level and housing values. Second, the own-good quantity variable (air pollution index) has a statistically significant negative coefficient, indicating a diminishing marginal willingness to pay (MWTP) for additional level of the air pollution. Third, a worsening air quality brings about a substantial amount of welfare loss ($26.3 billion) among households residing in the SMA.
Keywords: Air pollution; spatial hedonic model; welfare loss; demand function (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wsi:jeapmx:v:20:y:2018:i:02:n:s1464333218500060
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Environmental Assessment Policy and Management (JEAPM) is currently edited by Thomas Fischer
More articles in Journal of Environmental Assessment Policy and Management (JEAPM) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().